Donald Trump Has a Meeting Set This Week with NFL Officials about a Potential Bills Deal
Donald Trump is suing to remove his name from the Trump Taj Mahal and the Trump Plaza. The former casino baron once promoted Atlantic City gaming with billion dollar shrines to his name, but he no longer wants any association with Atlantic City gaming.
Donald Trump recently told the Associated Press his reasoning for the lawsuit. Trump said, “I want it (the name) off both of them. I’ve been away from Atlantic City for many years. People think we operate, and we don’t. It’s not us. It’s not me.”
Trump: “Utter State of Disrepair”
In the filing before the New Jersey Superior Court, Trump’s lawyers elaborate on his disdain for the current gaming operations which bear his name. The filing states that the Trump Plaza and Trump Taj Mahal are in “an utter state of disrepair”. Because of the bad condition of the resorts, Trump believes they are hurting his name.
He doesn’t have much to worry about Trump Plaza. Its current owners announced last month that the casino will close in September 2014. There was brief talk that a New Jersey judge might order the casino to stay open another several months, in order to find a new ownership group. The state of Atlantic City’s casino gaming industry has fallen that far.
The Atlantic Club closed in January. Revel Casino is set to close on August 18, if no ownership group can be found by then. Trump Plaza and the Showboat Casino are set to close in September. That is four of the twelve casinos operating in the city at the start of the year.
Trump Entertainment Resorts
When Donald Trump’s gaming company, Trump Entertainment Resorts, entered its third bankruptcy back in 2009, the company was bought by the hedge fund, Avenue Capital Management.
During the bankruptcy proceedings, Trump argued in court his name and likeness should not be allowed to remain on the properties. The new ownership group decided the brand would fare better if it retained the Trump brand, so they offered Donald Trump 5% of the company’s stock and another 5% to retain the brand in perpetuity. Donald Trump agreed.
Donald Trump’s Motivation
Under the circumstances, two things have changed since 2009: Atlantic City gaming is in free-fall and Donald Trump needs to disassociate himself from gambling for the sake of another potential investment. Now that one of the two properties has failed, Donald Trump may see the handwriting on the wall for Trump Entertainment Resorts. If the other casino fails, then the resorts company is likely to end up in another bankruptcy. If so, then his name and likeness might end up being purchased by one of the leading competitors. Either way, it could leave his control. The current lawsuit could be a preemptive move, to assure no such thing happens.
NFL Franchise Ownership Push
Another motivation might be at work. Donald Trump is still pursuing his dream of owning an NFL franchise. In this case, he wants to buy the Buffalo Bills, whose longtime owner died late last year. The National Football League wants its ownership groups to have no connection to gambling in any way. Even the appearance of impropriety or game-fixing would hurt the brand.
Donald Trump has done plenty to assure NFL owners would never vote him into their ranks (the infamous USFL lawsuit, for example). Money talks and Donald Trump is known for his ego, so he has not given up hopes that he can become the Bills next majority owner. If he is to have any chance with the Bills purchase plan, he would need to divest himself of his 10% share of Trump Entertainment Resorts.
In that case, distancing from the name association is probably a good ploy. Though NFL executives are well-aware that Donald Trump no longer sits on the board of the gaming company which bears his name, the average NFL fan probably doesn’t know that. Having his name removed also removes any doubt.
